Kyle Bass: Central Bankers Are Building Potemkin Villages To Deceive Us [View article]
bbro is right, all structural problems can be solved with unlimited money printing. There will never be any negative consequences, and all classes of citizens get to share in the benefits. Japan will be an economic beacon.
More on jobless claims: The big decline nearly erases last week's large and unexpected jump, and will do nothing to ease concern about "tapering." The 4-week moving average is little-changed at 339,500. S&P 500 futures remain lower by 0.95%, but bond prices continue to give up some of their big early gains, TLT +0.3%. [View news story]
Can we stop with the "tapering" talk? Goldman don't want no stinkin' tapering.
Bernanke: Stocks continue with solid gains as the chairman suggests the Fed may never sell the massive assets it's accumulated, instead just letting them roll down. Most interesting are Treasury prices (TLT -1.1%) rolling over - the 10-year yield sunk to 1.89% as Bernanke's soft comments hit the tape, but has reversed to now threaten 2%. Gold (GLD +0.6%) has given up much of its knee-jerk gains, and the dollar (UUP +0.3%) is having none of it, higher across the board, particularly vs. the aussie (FXA -1.1%), yen (FXY -1%), and loonie (FXC -0.6%). [View news story]
Stocks may not collapse, but the QE will eventually flow into other assets. Buy what's down.
If you're looking for a safe investment, pay extra on your mortgage.
Bernanke: Stocks continue with solid gains as the chairman suggests the Fed may never sell the massive assets it's accumulated, instead just letting them roll down. Most interesting are Treasury prices (TLT -1.1%) rolling over - the 10-year yield sunk to 1.89% as Bernanke's soft comments hit the tape, but has reversed to now threaten 2%. Gold (GLD +0.6%) has given up much of its knee-jerk gains, and the dollar (UUP +0.3%) is having none of it, higher across the board, particularly vs. the aussie (FXA -1.1%), yen (FXY -1%), and loonie (FXC -0.6%). [View news story]
Well, at least he came out and finally admitted they'll never "unwind". $10 Trillion balance sheet here we come. Think inflation will stay confined to stocks?
That QE taper may end up being a QE expansion as FRBNY President Bill Dudley tells a gathering in Japan the uncertain economic outlook has him unsure if the next move will be up or down. He worries about investor over-reaction to a "normalization" of policy and suggests the FOMC may need to update what it needs to see to move in that direction. Stocks like the "up" talk, the S&P 500 (SPY +0.4%) at a fresh session high. [View news story]
Dovish Chicago Fed chief Charles Evans sounds constructive on the economy saying it's performing quite well and that Fed policy should hit "escape velocity" in 2014. Stocks give up their small gains, SPY now flat and the QQQs -0.4%, even with a 1.8% gain from Apple. [View news story]
Knocking stocks for a few points is San Francisco Fed President Williams reiterating his hope QE can begin to be tapered this summer and halted by year's end. This is not the first time Williams has said such, but he does reside in the FOMC's dovish camp. He notes even without QE, Fed policy would remain extraordinarily stimulative. [View news story]
Yep, just hedging their legacy. When it all unravels they can say "I called for QE to be shut down!"
Precious metals continue to tumble, with gold at $1,374 nearing the panicky lows (about $1,350) seen during April's liquidation. Any excuse will do in a bear market, and filings released yesterday containing data anywhere from 6 weeks to 5 months old showed continuing sales of gold ETPs by names such as Soros and BlackRock. GLD -1.3%, SLV -1.3% premarket. [View news story]
Sweet spot is coming. Don't hit the "buy" button until you hear Cramer say "Gold's run is over". Remember... he LOVED gold at $1800.
For the first time since April of 2009, the yen (FXY) fell through the 100-level against the dollar, helping the Nikkei rally nearly 3% on the session and almost 7% on the week. Japanese equities (EWJ) are now trading at levels last seen in January of 2008. Japanese capital flows data finally showed what many had been waiting for since BOJ Governor Kuroda's shot across the bow at deflation: an outflow, as Japanese investors became net buyers of foreign bonds. [View news story]
Hope the people on the street like higher fuel and food prices. Hope wages rise for them too.....
Apparently behind the mid-afternoon drop in the S&P 500 (SPY) (a not insignificant 10 points), the soaring dollar (UUP), and sinking commodities (GLD, USO) was the rumor of a Jon Hilsenrath article set to hit the WSJ claiming "tapering" of asset purchases is coming sooner rather than later. Thus far, nothing is up. [View news story]
Somebody at Goldman needed a buying opportunity....
Kyle Bass: Central Bankers Are Building Potemkin Villages To Deceive Us [View article]
April New Home Sales: 454K vs. 425K expected, 444K prior (revised from 417K). [View news story]
More on jobless claims: The big decline nearly erases last week's large and unexpected jump, and will do nothing to ease concern about "tapering." The 4-week moving average is little-changed at 339,500. S&P 500 futures remain lower by 0.95%, but bond prices continue to give up some of their big early gains, TLT +0.3%. [View news story]
Bernanke: Stocks continue with solid gains as the chairman suggests the Fed may never sell the massive assets it's accumulated, instead just letting them roll down. Most interesting are Treasury prices (TLT -1.1%) rolling over - the 10-year yield sunk to 1.89% as Bernanke's soft comments hit the tape, but has reversed to now threaten 2%. Gold (GLD +0.6%) has given up much of its knee-jerk gains, and the dollar (UUP +0.3%) is having none of it, higher across the board, particularly vs. the aussie (FXA -1.1%), yen (FXY -1%), and loonie (FXC -0.6%). [View news story]
If you're looking for a safe investment, pay extra on your mortgage.
Bernanke: Stocks continue with solid gains as the chairman suggests the Fed may never sell the massive assets it's accumulated, instead just letting them roll down. Most interesting are Treasury prices (TLT -1.1%) rolling over - the 10-year yield sunk to 1.89% as Bernanke's soft comments hit the tape, but has reversed to now threaten 2%. Gold (GLD +0.6%) has given up much of its knee-jerk gains, and the dollar (UUP +0.3%) is having none of it, higher across the board, particularly vs. the aussie (FXA -1.1%), yen (FXY -1%), and loonie (FXC -0.6%). [View news story]
That QE taper may end up being a QE expansion as FRBNY President Bill Dudley tells a gathering in Japan the uncertain economic outlook has him unsure if the next move will be up or down. He worries about investor over-reaction to a "normalization" of policy and suggests the FOMC may need to update what it needs to see to move in that direction. Stocks like the "up" talk, the S&P 500 (SPY +0.4%) at a fresh session high. [View news story]
Dovish Chicago Fed chief Charles Evans sounds constructive on the economy saying it's performing quite well and that Fed policy should hit "escape velocity" in 2014. Stocks give up their small gains, SPY now flat and the QQQs -0.4%, even with a 1.8% gain from Apple. [View news story]
Knocking stocks for a few points is San Francisco Fed President Williams reiterating his hope QE can begin to be tapered this summer and halted by year's end. This is not the first time Williams has said such, but he does reside in the FOMC's dovish camp. He notes even without QE, Fed policy would remain extraordinarily stimulative. [View news story]
Precious metals continue to tumble, with gold at $1,374 nearing the panicky lows (about $1,350) seen during April's liquidation. Any excuse will do in a bear market, and filings released yesterday containing data anywhere from 6 weeks to 5 months old showed continuing sales of gold ETPs by names such as Soros and BlackRock. GLD -1.3%, SLV -1.3% premarket. [View news story]
April Industrial Production: -0.5% vs. -0.2% expected, +0.4% prior. Capacity utilization 77.8% vs. 78.3% consensus; 78.5% prior. [View news story]
Rumored WSJ Piece 'Fed Maps Exit From Stimulus' No Joke After All [View article]
QE isn't going anywhere.
The End Of QE Won't Kill This Bull Market [View article]
File this article with the "Will Fed raise interest rates?" articles from 2010.
For the first time since April of 2009, the yen (FXY) fell through the 100-level against the dollar, helping the Nikkei rally nearly 3% on the session and almost 7% on the week. Japanese equities (EWJ) are now trading at levels last seen in January of 2008. Japanese capital flows data finally showed what many had been waiting for since BOJ Governor Kuroda's shot across the bow at deflation: an outflow, as Japanese investors became net buyers of foreign bonds. [View news story]
Apparently behind the mid-afternoon drop in the S&P 500 (SPY) (a not insignificant 10 points), the soaring dollar (UUP), and sinking commodities (GLD, USO) was the rumor of a Jon Hilsenrath article set to hit the WSJ claiming "tapering" of asset purchases is coming sooner rather than later. Thus far, nothing is up. [View news story]
Japan: The Best-Performing Equity Market YTD [View article]
No worries, Uncle Ben. Let's double that QE to $170 billion a month and get this S&P really cookin!